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Cover the full replacement cost of your vehicle in the event of write off.

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What is Replacement GAP insurance?

GAP insurance policies don't come much better than this.

Replacement GAP insurance is the highest level of GAP insurance cover available today. It's a combination of the three main types of GAP insurance: Finance GAP insurance, Invoice GAP insurance and Replacement GAP insurance - which means it provides the best of all cover levels.

In the event of your vehicle being declared a Total Loss (written off) through accident, fire, theft, or flood, Replacement GAP insurance aims to pay the difference between your Motor Insurance payout and THE GREATER OF either:

  • The amount (if any) outstanding on finance at the time of claim EXCLUDING any Negative Equity brought forward from a previous vehicle (unless the optional "Negative Equity Cover" was purchased), OR
  • The ORIGINAL PURCHASE PRICE that you paid for your vehicle first time around, OR
  • The cost of REPLACING YOUR VEHICLE with one of the same Make, Model, Age, Specification and Mileage (or nearest equivalent) as your original vehicle was when you first bought it - even if the replacement vehicle cost is MORE than you bought the vehicle for first time around.

Available For New & Used Vehicles

Brand New Vehicle:

If the original vehicle was brand new, the replacement vehicle price at the time of claim will be calculated based on the price of a brand new version of the same (or nearest equivalent) vehicle - even if the new vehicle costs more than you paid for your original vehicle!

Used Vehicle:

If the original vehicle was a used vehicle, the replacement vehicle price at the time of claim will be calculated based on the price of replacing the vehicle with one of the same Make, Model, Specification, Age and Mileage (or the nearest equivalent) as your original vehicle at the time you first bought it - even if the Replacement Vehicle costs more than you paid for your original vehicle!

Backed Up By Invoice Price Protection:

In either case (new or used vehicle) if the Replacement Vehicle price at the time of claim is LESS than you bought the original vehicle for, the policy will revert to an Invoice GAP insurance cover-level ensuring that unlike some other Replacement GAP insurance policies available elsewhere that would only pay out to the then lower cost of the Replacement Vehicle at the time of claim, our policy will always aim towards the higher of the two figures.

Am I Eligible For Replacement GAP insurance?

You can buy Replacement GAP insurance to cover a New or Used vehicle that:

  • Is less than five (5) years old.
  • You took ownership/delivery of within the last 365 days (or have not yet taken delivery of).
  • You purchased (or are purchasing) from a Motor Dealer or, Private Seller.
  • Is used for social, domestic, pleasure, commuting and some business uses (see below)
  • Was bought for no more than £150,000
  • Was bought cash outright, personal loan (secured or not), or financed by way of a HP, PCP or Conditional Finance Agreement.

You can NOT buy Replacement GAP insurance for a vehicle that:

  • Is more than five (5) years old.
  • You took ownership/delivery of more than 365 days ago.
  • Was bought for more than £150,000
  • Is used for/in any sort of competitions or rallies, hire and/or reward, driving tuition, racing, pace making, speed testing or reliability trials, or as a taxi.
  • Is not listed in Glass’s Guide,
  • Is a kit car, or invalid carriage
  • Is used solely for delivery or courier purposes
  • Is a commercial vehicle of more than 3500kg gross weight.
  • Is an American, Australian or Canadian vehicle (unless built for the UK market).
  • Is the subject of a Contract/Lease Hire Agreement
How Replacement GAP insurance Works

How does Replacement GAP insurance work?

In the event of your vehicle being declared a Total Loss (aka "written off") as a result of an accident, fire or theft, your comprehensive Motor Insurance policy would normally only pay out the market value of the vehicle at the time of loss.

Now, imagine that you'd bought the vehicle brand new, two years ago for £20k, it's now been written off and your Motor Insurer is only prepared to pay out £10k. This would leave you £10k short of being able to buy the same (or nearest equivalent) vehicle, brand new today. But not only that, imagine that the brand new vehicle today is on sale for £2k more than you originally bought your vehicle for.

In this scenario you'd have a "gap" of £12k - this being the difference between your motor insurance payout and the £22k cost of replacing the vehicle new-for-old today. Replacement GAP insurance would aim to pay this £12K.

However, Replacement GAP insurance can be bought for a vehicle up to 5 years old. If you'd bought Replacement GAP insurance to cover a used vehicle and that vehicle was declared a Total Loss within the policy term, Replacement GAP insurance would pay the difference between your Motor Insurance payout and the cost of replacing the vehicle at the time of claim with one of the same Make, Model, Age, Mileage and Specification as (or the nearest equivalent to) the original vehicle when you first bought it.

Key Features of Replacement GAP insurance

  • Combined Finance, Invoice & Replacement GAP - Covering up to the greater of either the outstanding finance, original invoice price or replacement vehicle price
  • Available for Cars, Light Vans & some Motorhomes, up to 5 years old, purchased within the last 365 days from an authorised dealer or finance house.
  • NO right to reduce the GAP insurance payout if your Motor Insurance policy pays out less than the Market Value of your vehicle at the time of loss.
  • DOES NOT exclude costs such as Warranties, Registration Fees, Insurance Premiums or fuel & paintwork protection applications.
  • Ability to cancel the policy at any time and receive a daily pro-rata refund of unused premium (a cancellation fee may apply)
  • CASH payout to you rather than to a nominated dealer, leaving you free to choose the provider of your replacement vehicle
  • FREE option to defer the start date of the policy by up to 12 months from the date the vehicle was first registered
  • Available for Cars or Light Vans less than 5 years old, bought for up to £150,000 within the last 365 days.
  • OPTION to include cover for up to £2,000 of negative equity brought forward from your previous vehicle.
  • Underwritten by UK General Insurance Limited, on behalf of Great Lakes Insurance SE.
  • Pays up to £250 towards the excess on your Comprehensive Motor Insurance policy.
  • FREE transfer of any unused premium on to a new policy on a replacement vehicle.
  • NO right to revalue the purchase price of your vehicle at the time you bought it.
  • Policy durations of up to 5 years available.
  • Claim Limits of up to £100,000 available.
  • FREE policy amendments.

What Claim Limit Do I Need?

The most frequently asked question... The honest answer, is that it very much depends how much your vehicle is going to depreciate by over the duration of the Replacement GAP insurance policy.

Guess!

Considering that nobody knows for sure how much your vehicle is going to depreciate, it's a little bit of guess work. A common perception is that the average vehicle will depreciate by between 40% and 70% over a three year period; and indeed lots do - it's not a bad starting point for selecting a Claim Limit.

The issue with this perception though, is that it's never a steady rate of depreciation. Vehicles depreciate faster (a greater %'age) in their earlier years (in terms of the age of the vehicle) than they do in their later years. So, whilst your vehicle might well only depreciate by say 50% over a 3 year duration, it could well be that perhaps 30% (or more) of that, was in the first year alone!

When choosing a Claim Limit for any GAP insurance policy, you have to try to predict the potential depreciation over the entire duration of the policy. If, for example, for a £15,000 vehicle you chose a 3 year policy with a Claim Limit of £5,000 (33%), this may well be sufficient for the first year, but with the potential for the vehicle to depreciate by up to 50%, 70% or even more, a £5,000 Claim Limit would likely be woefully inadequate as you approach the end of the policy.

The Replacement GAP insurance Difference.

Let's not forget too that Replacement GAP insurance needs to factor in the potential for the replacement cost of the new vehicle being more expensive than the original purchase price paid. This could be for a number of reasons such as the same level of discount that you originally enjoyed no longer being available or just that the Manufacturer has increased the price of the equivalent vehicle full stop!

The point, is that when choosing a claim limit for a Replacement GAP insurance policy you need to be considering both ends of the scale. Firstly, by how much will your vehicle depreciate over the lifetime of your Replacement GAP insurance policy. Secondly, by how much (if any) will the cost of replacing your vehicle with a new equivalent increase over the same period.

Still guessing?

But this is all still guess work. We want to flip it on it's head a little. Read on...

10 Of Our Replacement GAP insurance Claims - What claim limit would you have chosen?

What we're showing you below are details of actual claims that have paid out on our policies, along with the vehicle details including the original purchase price and the length of ownership.

From this, we can calculate the rate of depreciation as a cash value per month and also reflect the total depreciation over the same duration as a percentage of the original purchase price.

You might be surprised at how well (little depreciation) some vehicles performed and how bad (considerable depreciation) others did.

It makes for some very interesting reading, but that aside, whilst it doesn't entirely remove the element of guess work for you, we're confident that being able to see the vehicle types, values and durations of ownership alongside the payout/depreciation figures, will surely be of great help in you choosing a claim limit that you feel most comfortable with.

Vauxhall Adam

Vauxhall Adam
Vehicle Purchased
Invoice Price
GAP Claim
GAP Payout
August 2015
£8,250
June 2017
£2,945
Length of ownership:
22 Months
Rate Of Depreciation:
An average of £133.86 per month*
Total Depreciation:
35.70% of its original Invoice Price during the 22 months it was owned.*
Policy Cost:
The policy cost £96.66 (just 3.28% of the amount the policy paid out.)

Vauxhall Corsa

Vauxhall Corsa
Vehicle Purchased
Invoice Price
GAP Claim
GAP Payout
July 2013
£14,650
May 2017
£10,840
Length of ownership:
46 Months
Rate Of Depreciation:
An average of £235.65 per month*
Total Depreciation:
73.99% of its original Invoice Price during the 46 months it was owned.*
Policy Cost:
The policy cost £170.00 (just 1.57% of the amount the policy paid out.)

Nissan X Trail

Nissan X Trail
Vehicle Purchased
Invoice Price
GAP Claim
GAP Payout
July 2015
£29,000
May 2017
£10,350
Length of ownership:
22 Months
Rate Of Depreciation:
An average of £470.45 per month*
Total Depreciation:
35.69% of its original Invoice Price during the 22 months it was owned.*
Policy Cost:
The policy cost £162.65 (just 1.57% of the amount the policy paid out.)

Honda Civic

Honda Civic
Vehicle Purchased
Invoice Price
GAP Claim
GAP Payout
December 2014
£24,465
April 2017
£13,165
Length of ownership:
28 Months
Rate Of Depreciation:
An average of £470.18 per month*
Total Depreciation:
53.81% of its original Invoice Price during the 28 months it was owned.*
Policy Cost:
The policy cost £150.78 (just 1.15% of the amount the policy paid out.)

Ford Ka

Ford Ka
Vehicle Purchased
Invoice Price
GAP Claim
GAP Payout
August 2015
£9,962
April 2017
£4,895
Length of ownership:
20 Months
Rate Of Depreciation:
An average of £244.75 per month*
Total Depreciation:
49.14% of its original Invoice Price during the 20 months it was owned.*
Policy Cost:
The policy cost £108.92 (just 2.23% of the amount the policy paid out.)

Vauxhall Corsa

Vauxhall Corsa
Vehicle Purchased
Invoice Price
GAP Claim
GAP Payout
September 2015
£12,000
April 2017
£5,022
Length of ownership:
19 Months
Rate Of Depreciation:
An average of £264.31 per month*
Total Depreciation:
41.85% of its original Invoice Price during the 19 months it was owned.*
Policy Cost:
The policy cost £103.27 (just 2.06% of the amount the policy paid out.)

BMW 3 Series

BMW 3 Series
Vehicle Purchased
Invoice Price
GAP Claim
GAP Payout
July 2015
£26,270
April 2017
£5,890
Length of ownership:
21 Months
Rate Of Depreciation:
An average of £280.48 per month*
Total Depreciation:
22.42% of its original Invoice Price during the 21 months it was owned.*
Policy Cost:
The policy cost £205.03 (just 3.48% of the amount the policy paid out.)

Land Rover Discovery

Land Rover Discovery
Vehicle Purchased
Invoice Price
GAP Claim
GAP Payout
September 2015
£40,140
March 2017
£17,315
Length of ownership:
18 Months
Rate Of Depreciation:
An average of £961.94 per month*
Total Depreciation:
43.14% of its original Invoice Price during the 18 months it was owned.*
Policy Cost:
The policy cost £193.88 (just 1.12% of the amount the policy paid out.)

BMW 2 SERIES

BMW 2 SERIES
Vehicle Purchased
Invoice Price
GAP Claim
GAP Payout
December 2015
£28,000
March 2017
£8,845
Length of ownership:
15 Months
Rate Of Depreciation:
An average of £589.67 per month*
Total Depreciation:
31.59% of its original Invoice Price during the 15 months it was owned.*
Policy Cost:
The policy cost £174.21 (just 1.97% of the amount the policy paid out.)

Audi S3

Audi S3
Vehicle Purchased
Invoice Price
GAP Claim
GAP Payout
December 2015
£33,300
March 2017
£9,290
Length of ownership:
15 Months
Rate Of Depreciation:
An average of £619.33 per month*
Total Depreciation:
27.90% of its original Invoice Price during the 15 months it was owned.*
Policy Cost:
The policy cost £173.36 (just 1.87% of the amount the policy paid out.)

* - The Replacement GAP insurance rates of depreciation figures shown above reflect not only the depreciation of the original vehicle, but also the potential for the cost of the replacement vehicle to have been greater than the original purchase price paid.